Chinese telecom equipment firm Huawei has pledged to invest US$500 million in its research and development operations in Bangalore in an effort to avoid the brewing tensions between India and China, the Financial Times reported. Security concerns surrounding the company – its founder, Ren Zhengfei, was formerly a PLA officer – have impeded its expansion in India. Tariffs of 236% were imposed last month on Chinese-made synchronous digital hierarchy transmission equipment used in telephone networks. The recent heightening of tensions surrounding the disputed area of Arunachel Pradesh on the India-China border have also contributed to the fray. Huawei executives said the while the company supplies equipment to all of India’s mobile telephone networks, more needed to be done to woo stakeholders in the telecom sector. The investment would help Huawei’s India-based operations become a resource for its global operations, increase its local workforce, and improve penetration in remote areas.
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